Date post: | 26-Jan-2015 |
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Technology |
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How Technology Continues to Revolutionize Auditing
The Latest Tools and Their Impact on the Profession
Agenda
• Introduction • Historical Timeline Internet and Auditors• Technology’s Impact on Audit• Innovation in Audit Research• Evolution of Professional Networking• Latest Technology Tools for Auditors• Trends and the Future of Audit Technology
Then and Now
Auditors and Technology
• Early Adopters– Innovators (into the new from Latin
– Interested in new methods & techniques
– Risk takers– Forward thinking– Gen X & Y
• Laggards– Wait and see– Cautious– Hangs back– Last group to try or adopt a new product
– Dislike change
Evolution of Web for Audit
Computers, Auditors and CAATTs
• The Evolution of CAATTs 80’s– Around– Through– With– EDP/IT Auditors– Mainframe
• Audit Software 90’s– Data extraction and analysis– IT and non IT Auditors– Windows
• The Millenium– Software for all phases (planning, fieldwork, GRC)– Cloud computing
Impact of Technology
• Computers and networks provide most of the information needed for auditing
• Auditors must use the computer as an auditing tool
• Auditors must also use the computer for audit administration
Impact of New Technology on the Profession
• Professional Standards– 16 Global Technology Audit Guides have been released since January 2009
New Technologies and their Impact
• Mobile computing
• The Cloud or Internet based services– SaaS (application based)– PaaS (end to end SDLC)– IaaS (servers, storage, network)
Social Media
• Social Media Defined• The good the bad and the ugly
• What is the primary risk?
Technology as an Enabler
There is a wide array of specialized tools to support and enhance the entire spectrum of internal audit processes … for the most part (auditors) are not taking advantage of them
PwC 2010 Study on the State of the internal audit profession
Audit Software
Audit Software Categories
1. Data Analysis2. Work Collaboration and Management3. Risk Management4. Continuous Controls Monitoring5. Employee and Control Assessment 6. Research and Benchmarking
Data Analysis for Auditors
Although internal auditors have been doing data analysis for more than 25 years, it has only recently started to become standard practice.
By our nature, most accountants and auditors are inclined to stick with what has worked in the past, rather than reach outside our comfort zone for an alternative that could help us accomplish more.
Do you reach outside your comfort zone?
Obstacles to Implementation
• Lack of an audit methodology• Skill set gap• Department size• Cost implication • Complexity of the software• Resistance in training auditors• Failure of software to meet audit departments needs• Failure to plan for use
Heard on the Street
• AICPA Survey on Top Technologies for 2011 #1 Touch – screen technology
• Faster LANs• Voice Recognition• Fiber Optics• Private company GAAP IT Implementation
New Tools for Auditors
New Tools
• Sept, 2008….– Any device, Any time, Any where was born
– Users not interested in security, they want to trust, not to be trusted
– Any unprotected device connected to both the Internet & and company LAN poses a security risk
Other Technology Tools for Auditors
• Open Source Audit Software• Continuous Controls Monitoring • Regulatory Compliance • Business Intelligence Software
Audit Apps for iPhones/iPads
Imagine the Possibilities
• Access your computer from remote locations• Collaborate using tools from the road• Access audit programs, work papers and more from your mobile device
• Join Webinars and Webcasts for training• Conduct or participate in virtual meetings with staff, clients etc.
Trends and their Impact
• Mobile devices and wireless computing• Smart devices and malware• Cloud sourcing and computing – security, governance and compliance
• Social media platform for communications• Continuous risk and control assessment• Reporting to the Board using SOTA technology
Skill Set for Future Auditors
• Multi‐disciplinary less accountants more business oriented
• Critical thinking skills • Strong communication skills
Future Predictions
• Standards will mandate use of technology tools for audit
• New generation of auditors must have the KSA to utilize technology
• If auditors and audit departments do not adapt to new technology they risk outsourcing
• Social networking will evolve to professional networking
• Tools will become more intuitive• Knowledge hubs for audit tool, techniques and resources will consolidate and merge
Audit Programs in the Queue AuditNet®
• Auditor’s Guide to Cloud Computing ‐ Security Considerations.xls• Cloud Matrix_Benefits & Risks.xls• AuditNet® Guide to Social Networking• AuditNet® Guide to Wireless Security • Business Continuity Planning – A Diagnostic Tool• Forensic Document Examination• Guidelines for Validation Testing
– AuditNet® is working to provide tools and resources to keep pace with new technology!
Conclusion
• I hope that I have provided you with some useful information that will stimulate your thought processes!
• Any questions?
You Never Know What You Can Find on the ‘Net